GoDaddy Says “Pay 0%”—But Who Really Pays?
 
If you are like most business owners, you probably receive emails from companies trying to earn your credit-card processing business.

I recently received a GoDaddy promotion offering a free POS device and “0% credit-card processing fees.” Because I have worked in the payments industry for more than 20 years, I immediately knew there had to be more to the offer.
 
The headline certainly gets your attention, but business owners need to understand what “0%” really means. Unfortunately, finding all the conditions and qualifications behind the claim was not easy.
GoDaddy is not eliminating the cost of processing credit cards. Its Rate Saver program adds a surcharge to eligible credit-card transactions, transferring that cost to the customer.
 
What the advertisement does not prominently explain

• Rate Saver requires a paid subscription plan.
• The customer pays a surcharge when using a credit card.
• The merchant still pays 1.9% on in-person debit-card transactions.
• Debit cards cannot be surcharged, even when processed without a PIN.
• Manually entered credit-card transactions still cost the merchant 0.5%.
• Some ecommerce transactions are not eligible for Rate Saver.
• Disputes cost $15 each.
• Same-day and instant deposits cost an additional 1.75%.
• The merchant remains responsible for complying with surcharge laws, signage rules, disclosure requirements, and card-network regulations.

 
For example, a business accepting $20,000 per month in debit-card transactions would pay approximately $380 per month in debit processing fees, plus the monthly subscription—even though the advertisement leads with “0%.”

This does not necessarily make Rate Saver a bad program. For the right business, surcharging can substantially reduce processing costs. However, “0%” does not mean there is no cost. It means much of the cost is being transferred to the customer.
 
Questions to ask before accepting a 0% offer

1. Who is actually paying the processing fee?
2. What will I pay for debit-card transactions?
3. Is there a monthly software or subscription charge?
4. Which transactions are excluded from the offer?
5. What will keyed, online, and invoiced transactions cost?
6. Who is responsible for surcharge compliance?
7. Is the equipment truly free, and what happens if I cancel?
8. Is the pricing guaranteed in writing?

 
The headline may say “0%,” but the complete story is always in the details.
Cost is only part of the decision
Beyond rates and fees, business owners should ask another important question:
 
Who is the better company—or person—to trust with your business?
Will you have a dedicated representative who knows your business, or will you speak with a different person every time you call a customer-service center? When you have a funding problem, equipment failure, or chargeback, who will answer the phone—and how quickly will that person help you?
 
Every processor must deal with interchange and card-brand assessment fees. These wholesale costs are established by the card networks and vary based on factors such as:

• Type of business
• Type of card used
• How the transaction is processed
• Whether the card is present
• Information submitted with the transaction

 
Restaurants, nonprofit organizations, grocery stores, professional services, and retail stores can all qualify for different interchange categories. No processor can simply make these underlying card-brand costs disappear.
 
What processors can control is their markup over those costs, their additional fees, the technology they provide, and the quality of service they deliver.
 
At Tampa Bay Merchant Services you receive straightforward answers, honest and transparent pricing, and no misleading games. You have our direct telephone number, and you know exactly who will help you when you need assistance.
 
Before making a decision based on a headline promising “0%,” make sure you understand the entire offer—and the level of service that comes with it.
 
Reach out to us, if you have questions. We are here to help your business. Call Tampa Bay Merchant Service at 727-748-4181

Could Someone Open a Merchant Account in Your Company’s Name? Why Should You Care?
Most business owners know they need to protect themselves from credit card fraud, phishing emails, and stolen passwords.
But there is another type of fraud that deserves attention:

​Someone stealing your business identity and using it to open a credit card processing account. We are seeing this as a growing trend.
Fraudsters may obtain publicly available business information along with stolen or falsified personal information and attempt to establish a merchant processing account in the name of a legitimate business.
Once approved, that account could potentially be used to process fraudulent transactions—while appearing to be associated with you and your company.

​How Can This Happen?
A surprising amount of information about a business can be found online or through public records, including:

• Legal business name
• Business address
• Phone number
• Website
• Corporate registration information
• Names of owners or officers

Criminals may combine this information with stolen Social Security numbers, identification documents, banking information, or altered documents to impersonate a business owner.
They can then attempt to open merchant processing accounts, bank accounts, credit accounts, or other financial services in the company's name.

The Consequences Can Affect Your Legitimate Merchant Account
This is where business identity theft can become particularly serious.
If a fraudulent merchant account opened using your identity generates excessive fraud, chargebacks, or other prohibited activity, information associated with that account could potentially be reported to the Mastercard MATCH system.
MATCH is a database used by acquiring banks and payment processors to identify merchants and certain associated individuals that have been terminated for specified reasons.
Being associated with a MATCH listing can make obtaining or maintaining merchant processing services extremely difficult.

In some circumstances, identity theft involving a fraudulent merchant account could create problems for your legitimate credit card processing account as well.
You could find yourself having to prove that you had nothing to do with an account you never opened.
That is why business identity theft should be taken seriously and addressed as quickly as possible.

Warning Signs to Watch For
Pay attention if you receive:

• Mail or email from a payment processor you don't recognize
• Notices concerning merchant accounts you didn't open
• Unexpected deposits or withdrawals
• Requests to verify banking or ownership information for an account you didn't request
• Chargeback or collection notices involving unfamiliar transactions
• Calls concerning processing equipment you never ordered
• Credit inquiries you don't recognize

Don't assume an unexpected notice is simply a mistake. Investigate it.
Consider Freezing Your Personal Credit
One important step business owners can take is to freeze their personal credit reports with the three major credit bureaus: Equifax, Experian, and TransUnion.
A credit freeze is free and can make it more difficult for an identity thief to open new credit accounts using your personal information.
When you legitimately need someone to access your credit, you can temporarily lift the freeze and then put it back in place afterward.
A credit freeze will not prevent every type of business identity theft or guarantee that someone cannot attempt to establish a fraudulent merchant account. However, it provides another important layer of protection for your identity.

Protect Your Business
Treat your business information with the same care you give your personal financial information.
Be cautious about emailing driver's licenses, Social Security numbers, bank statements, and checks unless you know exactly who is receiving them and why.
Use strong, unique passwords and multi-factor authentication whenever available.
Periodically review your business bank accounts and business credit reports for unfamiliar activity.
Consider keeping your personal credit frozen when you are not actively applying for credit.
If someone contacts you claiming to represent your credit card processor, bank, POS provider, or another financial company, don't automatically provide information. Verify the person independently using a phone number or contact you already trust.

If You Discover an Account You Didn't Open — Act Quickly
If you learn that someone may have opened a merchant processing account using your identity or business information, don't ignore it.
Contact your legitimate merchant services provider, financial institutions, and the company associated with the fraudulent account as soon as possible.
Document everything, including dates, names, emails, letters, and phone conversations. You may also need to file an identity theft report and take additional steps to establish that the account was fraudulent.
The longer a fraudulent account operates, the greater the potential damage can become.

PROTECT MORE THAN YOUR MONEY — PROTECT YOUR BUSINESS IDENTITY
Business identity theft can affect much more than your bank account.
A criminal using your identity could potentially damage your credit, your company's reputation, and even your ability to accept credit cards through your legitimate business.

Protect your business name. Protect your personal credit. Protect your banking information. Protect your ability to accept payments.
 
Reach out to us, if you have questions. We are here to help your business. Call Tampa Bay Merchant Service 727-748-4181

​As a business owner, you receive monthly statements from just about every company you do business with—or at least they're available online.
The question is...
Do you ever take a few minutes to look at them?
When it comes to your credit card processing statement, it's one of the most important statements you receive each month.
Unfortunately, some processors don't make it easy to find. In fact, sometimes it almost seems like they'd rather you didn't read it.
Why is it important?
Because your monthly statement is often where processors notify you of new fees, fee increases, pricing changes, and other updates to your account. If you don't read it, you may never realize your costs have increased.
 
A Recent Example
If your processor is Global Payments, Heartland, or Worldpay, you may want to take a closer look at your latest statement.

Over the past year, these companies have introduced several new fees under different names, including:

• Annual Reporting Fee
• POS Integration Fee
• Infrastructure Upgrade Fee
• Annual System Enhancement Fee

 
Different names... the same result:
Higher processing costs.
Many of these notices are buried within the monthly statement, making them easy to overlook while you're busy running your business.
The Real Question
It's not whether a processor has the right to change pricing—many processing agreements allow for fee changes with proper notice.
The real question is:
Do you know what you're actually paying?
I've found that most business owners know the rate they were originally quoted, but very few know their true effective processing rate after all the monthly, annual, and miscellaneous fees are added.
I'd Be Happy to Help
As a Certified Payments Professional (CPP) with more than 20 years in the payments industry, I offer a complimentary statement review.
I'll show you:

• Your actual effective processing rate
• Every monthly, annual, and miscellaneous fee you're paying
• Opportunities to reduce your costs
• Whether your current pricing is still competitive

 
There is no obligation—just an honest review from someone who believes business owners deserve to understand exactly what they're paying. We are here to help your business. Call Tampa Bay Merchant Service 727-748-4181
 
Ray Harrington
Certified Payments Professional (CPP)
"The question isn't whether you're paying processing fees... it's whether you're paying more than you should."

When you partner with an ETA Certified Payments Professional (CPP), you’re choosing more than just a payments provider — you're choosing someone who is qualified, ethical, and committed to helping your business thrive.

A CPP is recognized by the Electronic Transactions Association (ETA) as a professional who:
✅ Has a minimum of 1–3 years of experience in the payments industry
✅ Has passed a rigorous, third-party exam developed by industry experts
✅ Has been recommended by a supervisor or industry leader
✅ Abides by a strict code of conduct
✅ Completes continuing education to stay up to date every 3 years

What That Means for You
By working with a CPP, you can trust that you're getting expert advice, transparent solutions, and a long-term partner who puts your business first.

Ray is here to help your business. Call Tampa Bay Merchant Service at 727-748-4181 today!

5 million US Credit Cards Leaked Online
 
https://www.malwarebytes.com/blog/news/2024/12/5-million-payment-card-details-stolen-in-painful-reminder-to-monitor-christmas-spending?utm_source=iterable&utm_medium=email&utm_campaign=b2c_pro_oth_20241223_decemberweeklynewsletter_paid_v4_1_173452521105&utm_content=Card_details_stolen
 
I read headlines like this and I see it from a different perspective. Most read these headlines and think, as a consumer, how their cards might be exposed in a data breach. That is not a problem for consumers as most fraudulent charges on a credit card is covered by the bank or issuer.  Any fraudulent charges taken by a merchant may be liable in most situation.  This is why as a merchant it is so important not to let your guard down. The fraudster is looking for cash and always searching for the weak link in the system.
 
Here are few things to be aware of:
 
If you are a retail business and need to manually enter a card there are certain rules you must follow.
 
If your account is a card not present account, always input the billing address, zip card, and the CVV at the time of sale. Look for the response to see if all the info matches. This helps to prevent fraud and helps should there be a dispute due to fraud.
 
Be suspicious of large orders that are shipped to an out-of-town address. Many times, it could be fraud and a stolen credit card involved. Just because there is an approval is no guarantee it is legit.
 
For a retail business that accepts cards in person, if a CHIP Card will not read, ask the customer for another form of payment.
 
There is more info. Now is a good time to revisit this post about protecting your business against disputes.  Click the link:
 
https://www.tampabaymerchantservices.com/blog/protect-your-business-against-disputes-and-charge-backs
 
We are here to help you should you have questions about disputes/chargebacks and anything related to Point Of Sale systems or credit card processing solutions. Give us a call at 727-748-4181!

Ever wonder why gas stations list prices with a "point" typically ending in 9/10 of a cent?  It is a practice that goes back to the early 1900s when adding even a single penny to the price of gas seemed like a significant increase due to lower overall gas costs at the time.  It's a marketing tactic that makes prices appear slightly cheaper to consumers, creating a psychological perception of a better deal compared to a whole number price.
 
How does this relate to credit card processing cost?  There are many companies in this industry that may only tell you what you want to hear, instead of giving you the truth. They might mention a very low rate of 1.25% cost to accept credit cards, however not mention the other fees.  Like, transaction fees, annual fees and termination fees, just to name a few. To really see ALL of the cost you need to look at the monthly processing statement.  To see the statement can take a lot of effort by requesting a login to a portal and the effort of login monthly.  Many time the statements can be hard to understand.  Just like gas stations marketing tactic, this is a way to keep the info difficult hard to view.  As it is stated, “Out of sight, out of mind”.
 
We are here to help your business and earn your business and keep your business! By giving you great rates and service, you win and we win. We are here for the long haul.   If you want transparent info and at your fingertips every month, give us a call at Tampa Bay Merchant Service!  727-748-4181

Although I work in the payment industry, I too am a consumer of goods and services like everyone else. Since I work in the payments industry, I notice things that the average consumer may not notice.

I am beginning to notice is many businesses have not adapted to the new Visa Rules when a fee is added to a card transaction.

In April 2023, Visa made changes to their compliant Surcharging regulations. Non complaint programs using the non-cash adjustment, service fee or some other line-item fee on the credit card receipt will be considered non- compliant Surcharging and may cause a business to be subject to fines by Visa and Mastercard.

1. Surcharging:
   • Definition: Surcharging refers to the practice of adding an additional fee to the total transaction amount when a customer uses a credit card for payment.
   • Fees: Merchants implementing surcharging typically pass on the cost of credit card processing to the customers, charging a percentage of the transaction amount.
   • Regulations: As of April 15th, 2023 Visa prohibits surcharging on debit and prepaid card transactions and have reduced the cap to 3%.
   • Violations: Failure to adhere to regulations result in a 1st time fine up to $5,000, and additional penalties starting at $25,000 including termination of your merchant account.

 

1. Dual Pricing:
   • Definition: Dual pricing involves setting different prices for the same product or service based on the customer's chosen payment method (e.g., cash or credit card).
   • Fees: Merchants employing dual pricing may offer a discounted price for customers using cash and the higher price for those using credit cards.
   • Regulations: Merchants must display the two prices of a “Cash Price” and a “List Price”. This does not add a fee to the receipts.
2. Non-Compliance with Visa Regulations:
   • Penalties: Failing to adhere to Visa regulations can result in penalties and consequences for merchants. These may include fines, increased scrutiny, or even termination of the merchant account.
   • Consumer Perception: Non-compliance can also affect the perception of your business among consumers, potentially leading to a loss of trust and loyalty.

​If your business charges a cardholder a fee to use a credit card or debit card and your terminal receipts show a fee you may not be compliant with the new rules. Visa is being very aggressive in seeking out businesses that are not in compliant and assessing penalties. This is being accomplished with secret shopper programs and consumer complaints. If your current company has not updated your terminal or your Point of Sale to adhere to the new rules, you should give us a call so we can help you become and stay in are in compliance.

At Tampa Bay Merchant Services we are here to help you should you have questions this post or anything related to Point-of-Sale systems or credit card processing solutions. Give us a call at 727-748-4181